NEMA welcomes antitrust decision on motor carriers.

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Press Release Summary:

Filed with US Surface Transportation Board, NEMA's comments support decision to terminate its approval of antitrust immunity for trucking company associations engaged in collective rate-related activities, including National Classification Council. Effective on Sept 4, decision will remove antitrust immunity from total of 11 US motor carrier bureaus. Ratemaking agreements will be subject to law, which prohibits agreements that unreasonably restrain trade and restrict competition.

Original Press Release:

ROSSLYN, Va. June 18, 2007- The National Electrical Manufacturers Association (NEMA) has filed comments with the U.S. Surface Transportation Board supporting the Board's decision to terminate its approval of antitrust immunity for trucking company associations engaged in collective rate-related activities, including the National Classification Council (NCC), an arm of the National Motor Freight Traffic Association (NMFTA).

The Board's public-interest determination is based substantially on comments in 2005 from NEMA and several NEMA member companies, and is expected to promote more robust competition in the market for both truckload and less-than-truckload (LTL) services. The Board's May 4 decision will become effective on September 4. On June 4, NEMA filed comments with the Board urging it to deny the NCC's request to delay implementation until November 4, 2008, and to retain the September 4 deadline for reform of NCC operations to comply with U.S. antitrust law.

"NEMA weighed in with the Surface Transportation Board on this matter because we know transportation costs are an important factor for our member companies," said Evan Gaddis, NEMA president and CEO. "We hope the Board's decision will allow market-based competition to play a greater role in determining motor freight charges for electroindustry shippers around the United States, which will especially benefit small and medium-sized companies."

The Board's decision removed antitrust immunity from a total of 11 U.S. motor carrier bureaus. United States law still permits carriers to enter into ratemaking agreements, but these agreements will now be subject to U.S. antitrust law, which prohibits agreements that unreasonably restrain trade and restrict competition, including price fixing.

NEMA is the trade association of choice for the electrical manufacturing industry. Founded in 1926 and headquartered near Washington, D.C., its approximately 450 member companies manufacture products used in the generation, transmission and distribution, control, and end-use of electricity. These products are used in utility, medical imaging, industrial, commercial, institutional, and residential applications. Domestic production of electrical products sold worldwide exceeds $120 billion. In addition to its headquarters in Rosslyn, Virginia, NEMA also has offices in Beijing, S£o Paulo, and Mexico City.